| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a reduction in the amount of sales and use tax |
|
|
collections that certain taxpayers who employ tipped employees are |
|
|
required to remit to the comptroller. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
|
|
by adding Section 151.4245 to read as follows: |
|
|
Sec. 151.4245. DISCOUNT FOR CERTAIN TAXPAYERS EMPLOYING |
|
|
TIPPED EMPLOYEES. (a) In this section, "tipped employee" has the |
|
|
meaning assigned by Section 62.052(b), Labor Code. |
|
|
(b) A taxpayer may deduct and withhold 1.25 percent of the |
|
|
amount of tax liability for a quarter or month in which a payment is |
|
|
made if: |
|
|
(1) at least half of the taxpayer's employees are |
|
|
tipped employees; and |
|
|
(2) the taxpayer pays each tipped employee a cash wage |
|
|
in an amount that is not less than the federal minimum wage under |
|
|
Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206), |
|
|
for an employee who is not a tipped employee. |
|
|
(c) In order to qualify for the deduction under Subsection |
|
|
(b), the taxpayer shall provide to the comptroller paystubs or |
|
|
other documentation showing that the taxpayer meets the |
|
|
requirements of Subsection (b). |
|
|
SECTION 2. The change in law made by this Act does not |
|
|
affect tax liability accruing before the effective date of this |
|
|
Act. That liability continues in effect as if this Act had not been |
|
|
enacted, and the former law is continued in effect for the |
|
|
collection of taxes due and for civil and criminal enforcement of |
|
|
the liability for those taxes. |
|
|
SECTION 3. This Act takes effect October 1, 2021. |